If you choose to go that route make sure you are compliant with your state lending laws.

I am not quite sure what you mean by "half cement" wall but if it is supporting the house, you need an engineer.If the engineer is going to inspect it, give code compliant advice on how to repair, and have it stamped I think $475 is fair.As a side note, an engineers recommendation will probably be much more involved than what a home improvement contractor may say.

I already spoke to the city and they confirmed I can build a second structure and stay compliant with local zoning laws.

Don't try to reinvent the wheel, this has been done thousands of times, legally, safely, compliant with tax and other regulatory aspects.

If foreclosure proceeding is needed, the downside is the cost because of the low loan amount.I'd like to help this family out, but also want to make this a win-win situation and be compliant in how the note is structured.

@John BowlerHere, code requires that all pools have a safety fence and you won't get insurance coverage without it.While I would never rent a property with a pool - the extra liability and costs are not worth any additional revenue in our climate - I would most certainly install a code-compliant fence around any pool before even considering putting it out for let.

That being said it will present challenges in scaling my business and I want to strive to be more systems oriented and compliant.

I can't quote exact rates on the forum or my compliance people will tear my head off for not making it a 100% compliant "advertisement" with all the small print etc.

POS city and POS compliant.  

This is the second compliant for noise from a neighbor by my tenant.